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Fed's Rate Cut, While Welcomed, Signaled
That the Economy Could Be in Big Trouble

By

Jeff Opdyke Staff Reporter of The Wall Street Journal

Updated Jan. 7, 2001 12:01 a.m. ET

What a way to ring in the New Year.

The Federal Reserve surprised the stock market on Wednesday by cutting its key interest rate half a point and investors celebrated like toddlers on Christmas morning. Stocks soared, prompting speculation that the market's...